Entities Prepare For COMEX Failure That Will Shock The World

[PeacePlan]

With gold and silver prices surging strongly, today one of the legends in the business warned King World News that investors should expect to see a failure at the COMEX. He also warned that this event will “shock market participants around the world.” Keith Barron, who consults with major companies around the world and is responsible for one of the largest gold discoveries in the last quarter century, also spoke about what this will mean for the gold and silver markets. Below is what he had to say in this powerful interview.



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Barron: “We had the gold and silver prices take a dive a couple of days ago when a Fed governor in Chicago made some noises about the Fed potentially tapering QE. But we are already seeing gold and silver rallying again. The reality is that the stock and bond markets will crater if the Fed gets serious about tapering....



Continue reading the Keith Barron interview below...

http://kingworldnews.com/kingworldn..._COMEX_Failure_That_Will_Shock_The_World.html

 

[DFF]

Mmm...meh...

Since ronpaulforums was created, members here have been speculating (wishing) that the COMEX would default...

Hasn't happened...but, I am aware this doesn't mean it can't happen...

Anythings possible...

 

[thoughtomator]

Won't shock anyone who's been paying attention. Over at ZH they've been watching the JPM gold vault get emptier and emptier. It won't be long before it is obvious to all that paper gold doesn't represent actual gold, at which point the paper market will implode and the price of actual physical will go through the roof. I expect major intervention to head this scenario off, but at a certain point there simply won't be the gold to cover the promises.

 

[Seraphim]

Won't shock anyone who's been paying attention. Over at ZH they've been watching the JPM gold vault get emptier and emptier. It won't be long before it is obvious to all that paper gold doesn't represent actual gold, at which point the paper market will implode and the price of actual physical will go through the roof. I expect major intervention to head this scenario off, but at a certain point there simply won't be the gold to cover the promises.

Correct.

Not only that but their gold desperation has kicked into high gear.

http://www.zerohedge.com/search/apachesolr_search/

 

[Seraphim]

^^ For those of you not aware; JP Morgan is the fiduciary of the COMEX. They oversee the entire operation.

Also see;

http://www.zerohedge.com/news/2013-07-26/jpmorgan-exit-physical-commodity-business

The overseer of the COMEX (Commodities Exchange) is LOW on commodities in relation to their leverage and exposure and now they are saying they will be exiting the physical commodities business.

Spiddy. Senses. Tingling.

 

[Carson]

Mmm...meh...

Since ronpaulforums was created, members here have been speculating (wishing) that the COMEX would default...

Hasn't happened...but, I am aware this doesn't mean it can't happen...

Anythings possible...

Hasn't it been a failure for months?

I'm showing a exchange rate price of silver around $20.00.

http://www.kitco.com/charts/livesilver.html

And an actual market rate of around $25.00.

http://www.blanchardonline.com/blanchard_products/silver_bullion_overview.php

I feel its failing for me but I'm not much into such things or have researched whether this is really a wide spread from reality or not, historically.

 

[Smaulgld]

If you read king world news for the past four years you'd learn that 'next week or soon' gold and silver will enter the stratosphere go parabolic, soar, blow the doors off, crush the shorts etc.
Its amusing reading and a good anecdote to the everything is fine,QE is working and the economy is "recovering" talk in the MSM

 

[Smaulgld]

A three to five dollar premium over spot for a one ounce US eagle coin is not that extreme. For a generic round a $3-5 premium starts to raise eyebrows.
Back in april there was a massive spread, not so much now. That premium wasn't because of a silver shortage but rather a coin shortage as the mints struggled to keep up with the sudden surge in demand due to the drop in price.

The vast bulk of silver used is for industrial and jewelry. Less than half is for investment and most of that goes to ETF and Comex trades, not bullion purchases. Very little of silver's demand is met by people actually buying the coins. This year looks to be a record year-but it will be 50 million eagles sold of the 800 million of silver bought in total. These are rough numbers as I recall reading from the silver institute and checking the US mint's sales page.

The physical market is microscopic. I think I saw sprott or his partner Rule mention that the total investment in gold, silver and the miners is less than 1% of the invested assets in the world.

While that is tiny, almost all of that investment is in paper mining shares, and gold and silver ETFs.

Buying coins is not a good idea if you want to make a profit because you have to pay $3-5 premium per coin and then if you go to sell the market is illiquid and you have to sell back to a dealer who will pay you probably 10% under spot. And then there are storage and insurance costs. So to make back the premium and insurance and storage costs and to compensate for the hair cut you will take from the dealer you need to see a massive rise from the price you paid.

That's why ETF's are popular as they can be traded quickly with low transaction costs.

 

[Carson]

A three to five dollar premium over spot for a one ounce US eagle coin is not that extreme. For a generic round a $3-5 premium starts to raise eyebrows.
Back in april there was a massive spread, not so much now. That premium wasn't because of a silver shortage but rather a coin shortage as the mints struggled to keep up with the sudden surge in demand due to the drop in price.

The vast bulk of silver used is for industrial and jewelry. Less than half is for investment and most of that goes to ETF and Comex trades, not bullion purchases. Very little of silver's demand is met by people actually buying the coins. This year looks to be a record year-but it will be 50 million eagles sold of the 800 million of silver bought in total. These are rough numbers as I recall reading from the silver institute and checking the US mint's sales page.

The physical market is microscopic. I think I saw sprott or his partner Rule mention that the total investment in gold, silver and the miners is less than 1% of the invested assets in the world.

While that is tiny, almost all of that investment is in paper mining shares, and gold and silver ETFs.

Buying coins is not a good idea if you want to make a profit because you have to pay $3-5 premium per coin and then if you go to sell the market is illiquid and you have to sell back to a dealer who will pay you probably 10% under spot. And then there are storage and insurance costs. So to make back the premium and insurance and storage costs and to compensate for the hair cut you will take from the dealer you need to see a massive rise from the price you paid.

That's why ETF's are popular as they can be traded quickly with low transaction costs.

If you look at the increase in a more practical form a 25% mark up is through the stratosphere!

 

[Smaulgld]

it is but it's typical on a US eagle- the premium was $2.99 when the silver price was $15-18 five years ago.

 

[oyarde]

it is but it's typical on a US eagle- the premium was $2.99 when the silver price was $15-18 five years ago.

I have never paid any of that , if I had to I would just buy 90 % or less instead . My local guy is having to pay $4 over as shipped price if he orders any for you and he adds .50 cents ea to them. .What he buys that comes in , you are correct , he pays about 5 % under spot for , but these can be purchased at around spot to slightly over . I was by there yesterday, there were two Engelhard 1 ounce gold bars in the case he had recently purchased @$1320 , those were for sale @ $1330.

 

[cubical]

Comex is such a small part of the actual gold market, it is almost irrelevant(size wise, it obviously sets the price). If someone was really wanting to acquire gold, they would not demand delivery from the Comex. People who trade on the comex want profits not gold.

 

[oyarde]

Comex is such a small part of the actual gold market, it is almost irrelevant(size wise, it obviously sets the price). If someone was really wanting to acquire gold, they would not demand delivery from the Comex. People who trade on the comex want profits not gold.

Right , so London will set the price then ?